smallbusinessautralia

Rising Influence of Stakeholders on Change

Stakeholders can be defined as individuals, groups of people or other organisations that can influence the functioning and success of a small business...

So, who's in charge here?

By now, we should all be in agreement that our small business world is constantly under the influence of change. In the last couple of postings we reviewed our readiness for change and how that can be fuelled by the simple art of asking questions. Let's just park that for a moment and consider exactly where lies our power base. This is really important.

Compared with 30 or 40 years ago, there has been a marked shift of influence within the Australian business community. That influence has diminished the power that a business owner could once wield in the market place. This is due to, not just that power shift towards other stakeholders, but the rise in the number of stakeholders that can impact our businesses, either positively or negatively.

Now, every business is different and, particularly with small or micro-businesses, the stakeholder mix can vary and, in some cases, only include:

  • the business owner

  • his or her customers

  • his or her suppliers of materials and/or services (including admin, accounting etc.).

Of course, that mix can easily change as fast as marketplace operating conditions change. As a result it is always a good idea to keep firmly in the back of our minds a list of other possible stakeholders, such as:

  • Employees

  • Shareholders

  • Competitors

  • Special interest or community groups (especially those who may have concerns over the effect of your business on the environment or the economy)

  • Politicians; Unions

If we look closely at this list it can be seen that stakeholders can represent both internal and external forces for change. In some cases, though, they can be significant forces against change!

And so it is that, when considering people's response to an impending change, we need to use this broad range of stakeholders as our litmus test to assist in determining growth opportunities as well as foreseeing obstacles.

So...

Keep probing, asking questions and, in doing so, continue to strengthen that wall of readiness to help manage the inevitability of change in your workplace.

This is just one way to ensure YOU stay in charge!

Ted Beecher
BLA Director

Are You Ready For Change?

…'If it ain't broke don't fix it'
...'Don't change a winning team'
...'Don't change horses in mid-stream'

How often we see these kind of phrases and, let's face it, they can make pretty sound sense in their own right.

HOWEVER, when small business people like us stick with these WITHOUT taking regular temperature checks in our work and market places, things can come up and bite us (and invariably do when we least expect it!).

So, what should we do? Here's a few basics:

  • Talk regularly to customers in order to keep up to speed with the quality of our products, services and processes. Continually review their needs and draw intelligence from what is really going on their worlds, not just what we think might be.

  • Listen to suppliers on things like the effects of changing market trends or shifting environmental factors. Let's make them feel like we are true and curious stakeholders in their business (and them in ours, of course).

  • The same applies to our staff and, above all, keep them in the loop in an honest and open way. Not only does this engender team work but you never know what they pick up during the day which might have a major impact on the way we run our businesses.

Some people might refer to all this as simply risk management (an important subject for another time!); for others it's a natural default position founded on common sense and a hunger to make their businesses the best in the field.

Whatever we want to call it, one thing we can be sure, it creates READINESS for change. In other words it means we are ever alert; always on the starting blocks just waiting for that gun.

So how ready are you? To get some answers to this, just take a little time out to look at some of the questions you may need to ask yourself first.

Ted Beecher, BLA Director